Moody's rates Zobele notes B2

Moody's Investors Service said it assigned a provisional (P)B2 corporate family rating to Z Beta Sarl and a provisional (P)B2 rating to €180 million of senior secured guaranteed notes to be issued by subsidiary Zobele Holding SpA. The outlook is stable.

The agency said the (P)B2 corporate family rating reflects the group's leading market positions in the development and manufacturing of air care and insecticide devices for the consumer industry; strong and longstanding customer relationships with blue chip companies such as Henkel, Procter & Gamble and Reckitt Benckiser; exposure to defensive consumer goods end markets; acceptable barriers to entry; and the group's relatively good geographical diversification.

The rating is constrained by the group's relatively low and declining operating margins, customer concentration, constrained asset base and relatively weak free cash flow generation, Moody's said.

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